US-based TerraForm Power (TerraForm) has received approval from Spain’s National Securities Market Commission (CNMV) to acquire 95% of Saeta Yield (Saeta).

Additionally, CNMV has set the closing date for the TerraForm’s acquisition of 95% of Saeta Yield for 12 June this year.

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The US-based power company is also planning to procure the remaining 5% of the shares, which is expected to close on 3 July this year.

“The acquisition is expected to further strengthen TerraForm’s long-term plan to establish an investment grade balance sheet.”

Saeta’s portfolio includes 778MW of onshore wind and 250MW of concentrated solar, with an average age of six years and a remaining useful life in excess of 23 years.

TerraForm Power chief executive officer John Stinebaugh said: “We are very excited about the positive response to our tender offer for this high-quality renewable power company.

“With 100% of Saeta’s assets integrated into the TerraForm Power platform, we will be able to accelerate the realisation of operational and financial synergies and will enjoy an expanded platform for growth in Europe.”

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To fund the $1.2bn total purchase price, TerraForm plans to execute a private placement of $650m of its Class A stock with sponsor Brookfield Asset Management (Brookfield) or its affiliates, while the remaining $550m will be financed with available liquidity.

The acquisition is expected to further strengthen TerraForm’s long-term plan to establish an investment grade balance sheet.

Currently, TerraForm has more than 2,600MW of installed capacity in the US and aims to acquire operating solar and wind assets in North America and Western Europe.